The Coca-Cola Co. says its net income rose 3 per cent in the third quarter, as the world’s biggest beverage maker expanded in in emerging markets and sold more of its sports drinks and teas at home.
The Atlanta-based company, which makes Sprite, Fanta, Minute Maid and Dasani water, says global sales volume rose 4 per cent during the period. But the growth was more pronounced in emerging markets, where Coca-Cola has been looking to capitalize on the growing ranks of middle-class consumers.
In its flagship North American market, the company said sales volume rose by 2 per cent. The increase was driven by what Coke refers to as “still beverages,” such as Powerade, Gold Peak and Fuze teas. Its sparkling beverage unit, which includes its namesake soft drink, was flat from a year ago.
In India, by contrast, the company saw a 34 per cent increase for its Coca-Cola brand and a 15 per cent increase for Sprite. Overall sales volume in India was up 15 per cent during the period.
This is a message that we must communicate to our clients, this just goes to prove on how large multinationals continue to seek growth outside of the traditional markets. This growth that we continue to see and growing middle class goes to show the importance of having exposure to these markets are so important. The Excel Blue Chip Fund is great for investors seeking exposure to these markets, but having the comfort of staying at home with their investments.
Written by Sam A.